Government to sell up to 10% stake in SAIL; OFS to open on January 14

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For non-retail investors, the OFS will open on January 14 while for retail investors on January 15.

The government on January 13 confirmed the opening of Offer for Sale (OFS) in SAIL for retail and non-retail investors.The DIPAM Secretary said in a tweet the OFS in SAIL will open for non-retail investors on January 14 and for retail investors on January 15. With this, the government would divest 5 percent equity in the firm with a 5 percent greenshoe option.

According to the details shared by the Ministry of steel, the floor price for SAIL OFS has been set at Rs 64 per equity share of the firm. The total OFS size has been calculated at 206,526,264 equity shares of the face value of Rs 10 each (Base Offer Size), with an option to additionally sell up to 206,526,264 equity shares of the firm (over-subscription option). With this, the total OFS size stands at 413,052,528 shares, which is calculated at Rs 2,664 crore.

The SAIL’s regulatory filing data states 12.5 percent of the offer shares will be reserved for the allocation to retail investors. Apart from this, the government clearly mentioned that no single bidder other than mutual funds registered with SEBI will be allocated over 25 percent of the Offer Shares being offering in the offer.

Apart from these, the government stated that the allocation to retail investors will be made based on Cut-off price — lowest price at which the offer shares are sold in the non-retail category based on all valid bids received on transaction day at stock exchanges.

SAIL has chosen DAM Capital Advisors Limited (formerly known as IDFC) and ICICI Securities Limited as brokers on its behalf. DAM Capital Advisors Limited will be act as the settlement broker on behalf of the seller’s broker.SAIL is a Public Service Undertaking under the Ministry of Steel and India’s largest steel producer with an annual capacity of about 21 million tonne per annum (MTPA). The Union government has a 75% stake in SAIL. Prior to the announcement of OFS, SAIL in December had sold 5 percent stake in the steel CPSE.